Chase Plans Single-Note Series $900M Card ABS

JPMorgan Chase is securitizing its first batch of CHASEseries notes backed by credit card receivables this year in a $900 million single-class series transaction, according to a regulatory filing Monday.

The Chase Issuance Trust 2017-1 (CHAIT) includes only a single Class A notes, carrying an annual interest rate of Libor plus 30 basis points. The notes will carry the standard 14% credit enhancement level that has been included with CHASEseries issuances since 2009.

Fitch Ratings has issued an ‘AAA’ rating on the transaction, which will join 31 other outstanding series of CHASEseries notes that carry a balance of 34.37 billion. That balance includes $28.3 billion of Class A notes, $3.09 billion of Class B notes and $2.98 billion of Class C notes, according to Fitch.

The underlying accounts have an average weighted life of 2.95 years.

The transaction is the first since the completion of Chase’s seventh CHAIT transaction last September.

The notes have a scheduled principal payoff date of January 2020, and a legal maturity date of January 2022.

JPMorgan is lead underwriter; co-managers are Barclays and RBC Capital Markets.

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